Internet Explorer 7.0 cannot be used for folders publishing. Therefore, in order to publish folders while using IE 7.0, we would recommend following the steps below:

1) On the Terminal Server:
Copy the file: C:\WINDOWS\explorer.exe and save the copy as "folders.exe"
(C:\WINDOWS\folders.exe)
2) On WebConnect Server: Run WebConnect Administration Tool, and publish the new file (C:\WINDOWS\folders.exe)
3) Specify the desired path in the "Parameters" field. In case that you would like to limit the users to this folder only, use the /root option.
For Example:
/root,\\server-name\data